for req a:

Exercise 11-15A (Algo) Using contribution margin format income statement to measure the magnitude of operating leverage LO 11-3, 11-4 The following income statement was drawn from the records of Finch, a merchandising firm FINCH COMPANY Income statement For the Year Ended December 31 Sales revenue (6,500 units X $165) $1,072,500 Cost of goods sold (6,500 units * $84) (546,800) Gross margin 526,500 Sales comissions (10% of sales) (107,250) Administrative salaries expense (83,000) Advertising expense (31,000) Depreciation expense (48,000) Shipping and handling expenses (6,500 units * $1) (6,500) fet income $ 250,750 Required a. Reconstruct the income statement using the contribution margin format b. Calculate the magnitude of operating leverage. c. Use the measure of operating leverage to determine the amount of net income Finch will earn if sales increase by 20 percent Complete this question by entering your answers in the tabs below. Req A Req Band Reconstruct the income statement using the contribution margin format. FINCH COMPANY Income Statement For the Year Ended December 31 Less: Variable costs Less: Fixed costs Complete this question by entering your answers in th Req A Reg B and C Reconstruct the income statement using the contribution marg FINCH COMPANY Income Statement For the Year Ended December 31 Less: Variable costs Less: Fixed costs